Online seller VANCL has been arguing about the cost of shirts with offline manufacturers. Chen Nian, the founder of VANCL told the reporter yesterday that they try to compete by low price with traditional staggering profit in clothing industry.
Chen Nian revealed that the price is usually five times or even ten times of the cost in traditional clothing industry. For example, the cost of a shirt priced at ï¿¥1000 is around ï¿¥100,for those priced at overï¿¥2000, the cost is only ï¿¥150. the difference of the ï¿¥50 in cost is not about material and workmanship, but about examination procedure. Chen Nian aim to put the price back to the real value.
Some netizens predicted that the cost of VANCL shirts is no more than ï¿¥29.5 , thus to keep the break-even balance. Therefore, the low price strategy is based on the compromise to poor quality.
Chen Nian said those predictions overestimate the operating costs of VANCL but underestimate the cost of production. According to an insider of VANCL, many management of VANCL are from JOYO, they have rich experience in e-commerce. The cost of online operation is low, and it is an advantage over traditional clothing enterprises in the price war. Chen Nian also emphasized that they tried to get more market shares and put the price back to the real value.(Cindy)
